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FED ER A L RESERVE BANK OF NEW YORK April 17, 1981 BOARD OF GOVERNORS’ SEMIANNUAL AGENDA OF REGULATIONS To the Chief Executive Officer of the Institution Addressed: Enclosed is a copy of the Board of Governors’ Semiannual Agenda of Regulations and Regulatory Flexibility Agenda— a report on the regulatory matters that the Board now has under consideration or anticipates considering over the next six months. The Semiannual Agenda is divided into three parts: (1 ) regulatory matters that the Board had considered during the previous period on which final action has been taken; (2 ) regulatory matters that have been proposed for public comment and are still under consideration: and (3 ) additional regulatory matters that the Board may consider proposing for public comment during the next six months. Comments regarding any of the Agenda items may be submitted directly to the Board of Governors or to the Consumer Affairs and Bank Regulations Department of this Bank at any time during the next six months. If you would like your name or the name of any other member of your organization added to a mailing list to receive future editions of the Agenda, please so advise the Circulars Division of this Bank by completing and returning the form printed below. A n t h o n y M. S o l o m o n , P re s id e n t . T o: Circulars Division Federal Reserve Bank of New York 33 Liberty Street New York, N.Y. 10045 I would like to receive copies of the Board’s Semiannual Agenda of Regulations. P lea se p rin t: N am e T itle N a m e o f I n s tit u t io n Address FEDERAL RESERVE SYSTEM Board of Governors of the Federal Reserve System SEMIANNUAL AGENDA OF REGULATIONS AND REGULATORY FLEXIBILITY AGENDA April 1, 1981 through October 1, 1981 PRINTED IN N EW YORK FROM FEDERAL REGISTER, VOL. 46, NO. 62 Federal Register Vol. 46, No. 62 W ednesday, April 1, 1981 expected to be proposed for public comment after the January 1,1981, effective date of the Regulatory Flexibility Act. FEDERAL RESERVE SYSTEM 12 CFR Chap. II Semiannual Agenda of Regulations and Regulatory Flexibility Agenda Board of Governors of the Federal Reserve System. ACTION: Semiannual agenda. agency: Pursuant to the Board’s Statement of Policy Regarding Expanded Rulemaking Procedures and the recently enacted Regulatory Flexibility Act, the Board anticipates having under consideration regulatory matters as indicated below during the period from April 1, 1981 through October 1,1981. The Board’s next semiannual agenda will be published on October 1.1981. DATES: Comments may be received any time during the next six months. ADDRESS: Comments should be addressed to Theodore E. Allison Secretary of the Board, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. sum m ary: FOR FURTHER INFORMATION CONTACT: (A staff contact for each item is indicated with the regulatory description below.) SUPPLEMENTARY INFORMATION: The Board’s Semiannual Agenda is divided into three sections: Section A reports those regulatory matters from the Board’s last Semiannual Agenda (August 1,1980 through February 1, 1981) on which final action has been taken: Section B reports on regulatory matters that have been proposed and that are under Board consideration; and Section C reports regulatory matters the Board may consider proposing for public comment during the next six months. A double asterisk in Sections B and C indicates those matters listed on the Board’s previous Semiannual Agenda; a dagger indicates a proposal that is likely to have a significant economic impact on a substantial number of small entities. The latter designation applies to only those matters proposed or A. REGULATORY M ATTERS FROM THE A U G U ST 1,1980 THROUGH FEBRUARY 1,1981 SEM IANNUAL AG END A ON W HICH FINAL ACTION H A S BEEN TAKEN 1. R egulation A — E xtension o f Credit by Federal R eserve B anks (12 CFR Part 201) Action taken: The Monetary Control Act of 1980 provides that any depository institution that holds transaction accounts or non-personal time deposits that are subject to Federal Reserve requirements shall have access to the Federal Reserve discount and borrowing facilities on the same basis as banks that are members of the Federal Reserve System. In June 1980, in order to implement this provision, the Board issued for public comment proposals to revise its rules relating to the provision of Federal Reserve credit presently contained in Regulation A (45 FR 40130, June 13,1980). Under the proposed regulation, Federal Reserve credit would be available under two basic programs—regular adjustment credit and extended credit which would include seasonal credit and special credit for institutions facing particular problems. In August 1980, the Board adopted the proposal substantially in the form proposed (45 FR 54009, August 14.1980). Authority: Sections 10(a). 10(b), 13, 13a, 19 of the Federal Reserve Act, 12 U.S.C. 347a, 347b. 343-347, 347c, 347d. 348-352. 374, 374(a) as amended by the Monetary Control Act of 1980 (Title I of Pub. I.. 96-22T 94 Stat. 132). Docket number: R-0307. S ta ff contact: Gilbert T. Schwartz, Associate General Counsel, Legal Division, (202-452-3625); John Spitzer, Senior Economist, Division of Research and Statistics, (202^152-2587). 2. R egulation D— R eserve Requirem ents of D epository Institutions (12 CFR Part 204) Action taken: The Monetary Control Act of 1980 imposes Federal Reserve requirements on all depository institutions that maintain transaction accounts or nonpersonal time deposits. In June 1980, in order to implement the reserve requirements provisions of the Act, the Board issued for public 2 c o m m e n t p r o p o s a l s t o r e v i s e it s r e s e r v e r e q u i r e m e n t r u l e s c o n t a i n e d in R e g u la t io n D to a p p ly th e n e w r e s e r v e r e q u ir e m e n ts to m e m b e r a n d n o n m e m b e r c o m m e r c ia l b a n k s , s a v in g s b a n k s , s a v in g s a n d lo a n a s s o c ia tio n s , c r e d it u n io n s , E d g e A c t a n d A g r e e m e n t C o r p o r a t io n s , a n d U n ite d S ta te s b r a n c h e s a n d a g e n c ie s o f fo r e ig n b a n k s th a t o ff e r t r a n s a c t io n a c c o u n t s o r (45 F R 38388, 1980, t h e B o a r d n o n p e r s o n a l t im e d e p o s i t s June 9,1980). In A u g u s t a d o p t e d t h e p r o p o s a l s u b s t a n t i a l l y in th e fo r m p r o p o s e d (45 F R 56009, A u gu st 22, 1980). Authority: Section 19 of the Federal Reserve Act, 12 U.S.C. 461 et. seq., as amended by the Monetary Control Act of 1980 (Title i of Pub. L. 96-221; 94 Stat. 132). Section 7 of the International Banking A ct of 1978, 12 U.S.C. 3105. Docket number: R-0306. S ta ff contact: Gilbert T. Schwartz, Associate General Counsel, Legal Division, (202-452-3625); Paul S. Pilecki, Attorney, Legal Division, (202-452-3281); Thomas D. Simpson, Senior Economist, Division of Research and Statistics, (202-452-3361). 3. R egulation F— Securities of M ember State Banks (12 CFR 206.7 and 206.71) Action taken: 1979, In D e c e m b e r th e B o a r d is s u e d fo r p u b lic c o m m e n t p r o p o s e d a m e n d m e n t s to c e r ta in p o r t io n s o f R e g u la tio n F c o n c e r n in g fo r m a n d c o n te n t o f fin a n c ia l s ta te m e n ts i n c l u d e d in r e g i s t r a t i o n s t a t e m e n t s , a n n u a l re p o rts a n d o th e r p e r io d ic rep orts 1979). (44 FR 76551, D ecem ber 27, T h e s e c h a n g e s a r e r e q u i r e d , in p a rt, to m a k e th e B o a r d ’s R e g u la tio n F s u b s t a n t ia lly s im ila r to r e g u la t io n s o f th e S e c u r itie s a n d E x c h a n g e C o m m i s s i o n . In O c t o b e r 1980, th e B o a r d a d o p t e d t h e p r o p o s a l s u b s t a n t i a l l y in th e fo r m p r o p o s e d (45 F R 65184, O cto b e r 2,1980). Authority: Securities Exchange Act o f 1934, 15 U.S.C. 78(i). Docket number: R-0269. S ta ff contact: T h o m a s A . S id m a n , A s s is t a n t D ir e c t o r , D iv is io n o f B a n k in g S u p e r v is io n a n d R e g u la tio n . 3503); R ic h a r d M. (202-452- W h itin g , S e n io r A tt o r n e y , L e g a l D iv is io n , (202-452-3779). 4. Regulation K— International Banking O perations (12 CFR 211.22) Action taken: Under the International Banking Act (IBA), the Board in November 1979 issued for public comment proposals relating to the selection of a “home State" by foreign banks with U.S. offices (44 FR 62903, November 1,1979). The IBA provides for the determination of a foreign bank’s “home State.” In October 1980, the Board adopted the proposals in substantially the form proposed (45 FR 67056, October 9, 1980). Authority: International Banking Act of 1978, 12 U.S.C. 3101. Bank Holding Company Act, 12 U.S.C. 1844. Docket number: R-0258. S ta ff contact: C . Keefe Hurley, Jr., Assistant General Counsel, Legal Division, (202-452-3269). 5. Regulation K— International Banking O perations (12 CFR 211.23) Action taken: In May 1980, the Board issued for public comment proposed amendments to Regulations K and Y (Bank Holding Companies and Change in Bank Control) dealing with the permissible nonbanking activities of foreign organizations that own or control U.S. banks and foreign banks that operate branches, agencies or commercial lending companies in the U.S. (45 FR 30082, May 7, 1980). In December 1980, the Board adopted the amendments with some modifications to the rules as proposed (45 FR 81537, December 11,1980). Authority: Bank Holding Company Act, 12 U.S.C. 1844. International Banking Act of 1978,12 U.S.C. 3108. Docket number: R-0291. S ta ff contact: C. Keefe Hurley, Jr., Assistant General Counsel, Legal Division (202-452-3269).6 6. Regulation K— International Banking O perations (12 CFR 211.5(c)(1)) Action taken: In April 1980, the Board in response to inquiries from banking organizations issued for public comment a proposal concerning certain additional investments that a banking organization may make in a foreign organization without prior Board consent (45 FR 30081, May 7,1980). In November 1980, the Board adopted the proposal which clarifies certain rights of accumulation under the general consent provision, provides that dividends reinvested within a year of receipt do not reduce the additional investment permissible under general consent, and limits the amount that may be invested in one organization to 10 percent of the investing organization’s capital and surplus (45 FR 76094, November 18, 1980). Authority: Federal Reserve Act, 12 U.S.C. 601, 615. Bank Holding Company Act, 12 U.S.C. 1843(c)(13). Docket number: R-0290. S ta ff contact: Michael L. Kadish, Attorney, Legal Division (202-452-3428). 7. R egulation T—Credit by Brokers and D ealers (12 CFR 220.2(f)) Action taken: In August 1979, the Board issued for public comment a proposed amendment to Regulation T to permit brokers and dealers to extend credit on fully paid for shares of openend investment companies that are registered under the Investment Company Act of 1940. The amendment would remove the competitive disadvantages placed upon brokers and dealers as compared to banks and other lenders (44 FR 47776, August 15, 1979). Because of the restrictions contained in section 11(d)(1) of the Securities Exchange Act of 1934 a broker or dealer would not be permitted to extend credit on the initial purchase of such shares. In August 1980, the Board adopted the amendment as proposed (45 FR 53452, August 12, 1980). Authority: Securities Exchange Act of 1934, 15 U.S.C. 78 g and w. Docket number: R-0158. S ta ff contact: R o b e r t L o r d , A ttorn ey , S e c u r itie s R e g u la tio n S e c tio n , D iv is io n o f B a n k in g S u p e r v is io n a n d R e g u la t io n (202-452-2781). 8. R egulation Z— Truth in Lending (12 CFR Part 226) Action taken: In December 1980, the Board issued for a second public comment period a revised proposal to simplify requirements for disclosure of consumer credit cost information, to provide model disclosure forms, and to incorporate many Board and staff interpretations issued over the past twelve years (45 FR 80648, December 5, 1980). This action was taken in view of the passage of the Truth in Lending Simplification and Reform Act, which requires implementating regulations to be in place no later than April 1,1981. On March 18,1981, the Board adopted revised proposals which will affect all extenders of consumer credit. Authority: Title VI of the Depository Institutions Deregulation and Monetary Control Act o f 1980 (Pub. L. 96-221). Docket Number: R-0288. S t a f f contact: Maureen P. English, Section Chief; Ellen Maland, Section Chief, Division of Consumer and Community Affairs, (202-452-3867). 9. R egulation Y— Bank H olding C om panies and Change in Bank Control (12 CFR 225.4(a)(14)) Action taken: In June 1980, in response to a request by a bank holding company, the Board issued for public 3 comment a proposal to add a new nonbanking activity to the list of those permissible for bank holding companies (45 FR 44963, July 2, 1980). The proposed activity is that of performing appraisals of any type of real estate other than single-family residences. The Board also requested comments on whether certain real estate-related advisory services provided to State and local governments, are closely relate to banking. In December 1980, the Board adopted the proposal substantially in the form proposed (45 FR 79750, December 2,1980). Authority: Bank Holding Company Act, 12 U.S.C. 1843(c)(8). Docket number: R-0310. S ta ff contact: Michael E. Bleier, Assistant General Counsel, Legal Division (202-452-3721). B. REGULATORY MATTERS THAT HAVE BEEN PROPOSED A N D WILL INVOLVE FURTHER BOARD CONSIDERATION **1. R egulation B— Equal Credit O pportunity (12 CFR Part 202) Action taken: In April 1979, the Board, in response to requests for clarification, requested public comment on how the specific rules of Regulation B should apply to various credit scoring practices (44 FR 23365, April 23, 1979). In August 1980, the Board published a revised proposal in the form of two proposed interpretations, the first dealing with consideration of income in credit scoring systems and the second with the selection and disclosure of reasons for adverse action (45 FR 56818, August 26,1980). Both proposals would affect creditors that use credit scoring systems. The Board will review the comments received on the draft proposals and is expected to take final action during the next six months. Authority: Section 703(a) o f the Equal Credit Opportunity Act, 15 U.S.C. 1691b(a). Docket number: R-0203. S ta ff contact: D o l o r e s S . S m it h , A s s is t a n t D ir e c t o r , D iv is io n o f C o n s u m e r a n d C o m m u n ity A ffa ir s , (202- 452-2412). **2. R egulation B— Equal Credit Opportunity (12 CFR Part 202) Action taken: In October 1978, the Board proposed for comment several amendments to the regulation. In April of 1979 one of the proposals was adopted (44 FR 23813, April 23,1979). The amendment clarified that persons who regularly refer consumers to creditors were subject to the general proscriptions against discrimination but were not subject to the mechanical and recordkeeping provisions of the regulation. Three proposals, which would affect creditors that extend credit to small businesses, have yet to be acted upon. These proposals would extend recordkeeping and adverse action notification requirements to business loans of under $100,000. Inquiries as to marital status of applicants would be prohibited in all business credit applications. It is expected that these matters will be considered by the Board during the next six months in conjuction with action on the proposed credit scoring interpretations that are also outstanding. (See entry B.l.) Authority: Equal Credit Opportunity Act, 15 U.S.C. 1691b. Docket number: R-0185. S ta ff contact: Dolores S. Smith, Assistant Director, Division of Consumer and Community Affairs, (202452-2412). 3. R egulation C— H om e M ortgage D isclosure (12 CFR Part 203) Action taken: In February 1981, the Board issued for public comment proposed revisions of Regulation C to implement statutory changes to the Home Mortgage Disclosure Act that were enacted in October 1980 (Pub. L. 96-399), and to redraft the regulation in a simplified more concise form (46 FR 11780, February 10, 1981). The proposal would affect depository institutions located in standard metropolitan statistical areas (SMSAs) and with assets over $10 million that make federally related home-purchase mortgage loans and home improvement loans. No significant new burdens are imposed on small entities or on any other covered institution. The statutory amendments require the following changes in procedures: (1) Institutions must make disclosures on a calendar year basis, in place of fiscal year reporting (about 15% of covered institutions were on a non-calendar year basis): (2) Institution must send a copy of its disclosure statement to its supervisory agency, and (3) Categorization of loan data must be by county in place of ZIP codes for untracted areas and for counties under 30,000. No other significant new requirements were imposed on any depository institution. The Board will review the comments received on the proposal and is expected to take final action during the next six months. Authority: Home Mortgage Disclosure Act o f 1975, 12 U.S.C. 2804(a). Docket number: R-0350. S ta ff contact: John C. Wood, Senior Attorney, Division of Consumer and Community Affairs, (202-452-2412). **4. R egulation D— R eserve R equirem ents o f D epository Institutions, Q— Interest on D ep osits (12 CFR Parts 204, 217) Action taken: In response to requests from the banking community, in December 1980 the Board issued for public comment proposed amendments to its Regulations D and Q to permit the establishment in the United States of International Banking Facilities (IBFs) by despository and other institutions to promote international banking activity in the United States. IBFs would make loans to and accept deposits from foreign residents free of reserve requirements and interest-rate limitations (45 FR 84070, December 22, 1980). This proposal would affect principally the major banks already engaged in international banking transactions. The Board will review the comments on the proposal and is expected to take further action during the next six months. Authority: Federal Reserve Act, 12 U.S.C. 461. Docket number: R-0214. S ta ff contact: Robert F. Gemmill, Associate Director, Division of International Finance, (202-452-3733); Gilbert T. Schwartz, Associate General Counsel, Legal Division, (202-452-3625). 5. R egulation D— R eserve R equirem ents o f D epository Institutions (12 CFR Part 204) Action taken: The Board will consider further during the next six months a proposal to adopt contemporaneous reserve accounting. In August 1980, the Board stated that it is disposed toward returning to contemporaneous reserve accounting if investigation indicates that such a system is practical (45 FR 56009, August 22,1980). The proposal would change the reserve maintenance schedule of depository institutions to coincide with reserve computation periods as a means of improving the System’s ability to meet its monetary policy objectives. Such a proposal would affect the reserve management practices of all depository institutions with $15 million or more in total deposits. Authority: 12 U.S.C. 461 et seq. Docket number: R-0306. S ta ff contact: D a v i d L i n d s e y , Assistant Director, Division of Research and Statistics, (202-452-2601); Gilbert T. Schwartz, Associate General Counsel, Legal Division, (202-452-3625). 4 **6. Regulation J—Collection of Checks and Other Items and Wire Transfers of Funds (12 CFR Part 210) Action taken: In A p r i l 1979, th e B o a r d r e q u e s t e d p u b l i c c o m m e n t o n th e h a n d lin g b y F e d e r a l R e s e r v e B a n k s o f p a y m e n t in s tr u m e n ts th a t a r e n o t p a y a b le o n d e m a n d 27, 1979). (44 F R 24929, A p r i l 1981 is F u r th e r a c t io n d u r in g n o t e x p e c t e d d u e to a n tic ip a te d a c t io n a t t h e S t a t e l e v e l t o r e s o l v e t h is m a t t e r . Authority: Federal Reserve Act, 12 U.S.C. 248(i), 248(o), 342 and 360. Docket number: R - 0 2 2 0 . S ta ff contact: Lee S. Adams, Senior Attorney, Legal Division, (202-452-3623). **7. R egulation J—C ollection o f C hecks and Other Item s and W ire Transfers of Funds (12 CFR Part 210) Action taken: In N o v e m b e r 1979, th e B o a rd is s u e d fo r p u b lic c o m m e n t a p r o p o s e d S u b p a r t C t o R e g u l a t i o n J. T h e p u r p o s e o f p r o p o s e d S u b p a r t C is t o s e t fo r t h a s y s t e m o f r ig h ts a n d r e s p o n s ib ilit ie s g o v e r n in g th e r e c e ip t a n d u se o f F e d e ra l R e s e r v e e le c tr o n ic c le a r in g a n d s e ttle m e n t s e r v ic e s th r o u g h a u t o m a t e d c l e a r i n g h o u s e s . T h e B o a r d is n o t e x p e c t e d to a d o p t a fo r m a l r e g u l a t i o n in t h is a r e a d u r i n g 1981. Authority: Federal Reserve Act, 12 U.S.C. 248(i) (j) and (o), 342 and 360. Docket number: R-0262. S ta ff contact: Lee S. Adams, Senior Attorney, Legal Division, (202-452-3623). **8. Regulation T— Credit by Brokers and D ealers (12 CFR 220.6(j)) Action taken: In r e s p o n s e to a r e q u e s t o n b e h a lf o f a r e g is t e r e d b r o k e r -d e a le r , t h e B o a r d in D e c e m b e r 1980 d e n i e d p e r m is s io n to a llo w th e a c c e p t a n c e o f b a n k d e p o s it o r y r e ce ip ts fo r g o ld b y a b r o k e r o r d e a le r to m e e t th e m a r g in r e q u i r e m e n t s s p e c i f i e d b y t h e r u le . A t th e s a m e t im e th e B o a r d i s s u e d fo r p u b lic c o m m e n t a p r o p o s e d a m e n d m e n t to R e g u la tio n T w it h d r a w in g s e c tio n 2 2 0 .6 ( j) w h i c h p e r m i t s t h e u s e o f f o r e i g n c u r r e n c y to m e e t m a r g in r e q u ir e m e n t s . T h e B o a r d w ill r e v ie w th e c o m m e n t s r e c e i v e d o n th e d r a ft a m e n d m e n t s a n d is e x p e c t e d t o t a k e fin a l a c t i o n o n th e p r o p o s a l d u r in g th e n e x t s ix m o n t h s . Authority: Securities Exchange Act o f 1945, 15 U.S.C. 78 g and w. Docket number: R-0250. S ta ff contact: L a u r a H o m e r , S e c u r itie s C r e d it O ffic e r ; R o b e r t L o rd , A tt o r n e y , S e c u r itie s R e g u la tio n S e c tio n , D iv is io n o f B a n k in g S u p e r v is io n a n d R e g u la t io n , (202-452-2781). **9. Regulation Y—Bank Holding Companies and Change in Bank Control (12 CFR 225.4(a)(9)) Action taken: In M a r c h 1 9 7 8 t h e B o a r d is s u e d fo r p u b lic c o m m e n t a p r o p o s a l to a m e n d it s R e g u l a t i o n Y r e l a t i n g t o p e r m is s ib le in s u r a n c e a c t iv it ie s fo r b a n k h o l d i n g c o m p a n i e s (4 3 F R 1 4 9 7 0 , A p r i l 1 0 ,1 9 7 8 ) . T h i s p r o p o s a l w o u l d c o n f o r m th e r e g u la tio n w ith th e F e d e r a l c o u r t A labam a A ssociation o f Insurance Agents v. B oard o f Governors o f the F ederal Reserve System, 5 5 3 F. 2 d d e c is io n , 2 2 4 (5 t h C ir . 1 9 7 6 ), r e h e a r i n g d e n i e d , 5 5 8 F. 2 d 7 2 9 (1 9 7 7 ), cert d e n i e d 4 3 5 U .S . 9 0 4 ( 1 9 7 8 ) . It w o u l d a f f e c t b a n k h o l d i n g c o m p a n ie s , in s u r a n c e a g e n c y a ffilia t e s a n d in d e p e n d e n t in s u r a n c e a g e n ts . T h e B o a r d w ill c o n s i d e r ta k in g fin a l a c t io n S ta ff contact: F R 2 9 2 5 6 , J u ly 6 , 1 9 7 8 ) . T h e g u i d e l i n e s A s s is t a n t D ir e c t o r , D i v is io n o f B a n k in g c r e d it o r w ill b e r e q u ir e d to ta k e fo r S u p e r v is io n a n d R e g u la tio n , (2 0 2 -4 5 2 - v i o l a t i o n s o f th e m o r e s u b s t a n t iv e 2 7 8 2 ); W a l t e r R . M c E w e n , A t t o r n e y , p r o v is io n s o f th e E q u a l C r e d it T ru st A c tiv itie s P rog ra m , D iv is io n o f O p p o r t u n it y A c t ( R e g u la t io n B ) a n d th e B a n k in g S u p e r v is io n a n d R e g u la t io n , F a ir H o u s in g A c t . B a s e d o n th e (2 0 2 -4 5 2 -2 5 2 1 ). c o m m e n t s r e c e iv e d , th e a g e n c ie s , u n d e r th e d ir e c t io n o f th e F e d e r a l F in a n c ia l In s titu tio n s E x a m in a t io n C o u n c il, a re r e v ie w in g a r e v is e d d r a ft a n d fu rth e r A u t h o r it y : Equal Credit Opportunity Act, 15 U.S.C. 1691, et seq. Federal Deposit Insurance Act, 12 U.S.C. 1818(b). Docket number: R - 0 1 6 8 . S ta ff contact: J e r a u l d C . K lu c k m a n , A s s o c ia t e D ir e cto r , D iv is io n o f C o n s u m e r a n d C o m m u n ity A ffa ir s , (2 0 2 - m on th s. 452-3401). Docket number: R-0050. Staff contact: Richard M. Whiting, Senior Attorney, Legal Division, (202452-3779). **10. R egulation Y— Bank Holding C om panies and Change in Bank Control (12 CFR 225.7) In February 1979, the Board adopted regulations to implement the Change in Bank Control Act, under which any person seeking to acquire control of any insured bank or bank holding company must provide 60 days’ prior written notice to the appropriate Federal banking agency. At the same time the Board invited public comment on the final regulations (44 FR 7229, February 6,1979); following review of the comments received, the Board will determine whether further action should be taken. Action taken: Authority: C h a n g e in B a n k C o n t r o l A c t o f 1978,12 U .S .C . 1817(j). Docket number: R-0199. Staff contact: Carl Howard, Senior Attorney, Legal Division, (202-452-3786); Jack M. Egertson, Assistant Director, Division of Banking Supervision and Regulation, (202-452-3408). **12. Policy Statement Concerning the use of Brokerage Commissions to Pay for Research Sources Action taken: I n O c t o b e r 1980, t h e B o a r d is s u e d fo r p u b lic c o m m e n t a p r o p o s e d p o lic y sta te m e n t c o n c e r n in g p o lic ie s a n d p r o c e d u r e s th a t s h o u ld b e a d o p t e d b y S ta te m e m b e r b a n k s a n d S ta te -c h a r te r e d , n o n d e p o s it , tru st c o m p a n y s u b s id ia r ie s o f b a n k h o ld in g c o m p a n ie s fo r th e id e n t ific a tio n a n d p e r io d ic r e v ie w o f p r a c t ic e s in v o lv in g th e p a y m e n t fo r r e s e a r c h s e r v ic e s w it h b r o k e r a g e c o m m is s io n s a n d d is c lo s u r e o f in fo r m a t io n c o n c e r n in g s u c h p r a c t ic e s to c u s t o m e r s 1980). (45 FR 72793, N ovem ber 3, S i m i l a r a c t i o n , in t h e f o r m o f a r e g u la to ry a m e n d m e n t, w a s p u b lis h e d • fo r c o m m e n t a t t h e s a m e t i m e b y t h e C o m p t r o lle r o f th e C u r r e n c y . In a d d i t i o n t o t a k in g a n a p p r o a c h th a t a tte m p ts to m in im iz e th e r e g u la t o r y b u rd e n , th e p r o p o s e d p o lic y s ta te m e n t w o u l d m a k e it c l e a r t h a t it d o e s n o t Anticipated action: The Board will consider publishing for comment a revised proposal that would permit Edge Corporations to provide a broader range of banking services than is now permissible to a limited class of customers. While Edge Corporations are in most instances owned by major banks, the proposal would also afford scope for smaller banks to compete more effectively in development and supply of services to support U.S. trade. Pursuant to the International Banking Act, a similar proposal w as published for comment in February 1979 (44 FR 10509, February 21,1979), to improve the competitive position of Edge Corporations. Action on this matter would represent a relaxation of regulatory burden on Edge Corporations and would permit a shift to a more cost-effective method of supervision of Edge Corporations. Authority: In te r n a tio n a l B a n k in g A c t o f 1978,12 U .S .C . 3101. F e d e r a l R e s e r v e A c t , 12 U .S .C . 601 a n d 615. Staff contact: C. Keefe Hurley, Jr., Assistant General Counsel, Legal Division (202-452-3269); Henry S. Terrell, Chief, International Banking Section, Division of International Finance (202-452-3768). a p p ly to a n y tru st in s titu tio n w h ic h d o e s n o t r e c e iv e p ro d u c ts a n d s e r v ic e s o th e r th a n b r o k e r a g e s e r v ic e s fo r c o m m is s io n d o lla r s . A lth o u g h th e B o a r d b e lie v e s th a t m o s t o f th e s m a lle r tru st in s t it u t io n s w o u ld c o m e w it h in th e s t a t e d e x e m p t io n , th e B o a r d s p e c if ic ia lly s o lic it e d p u b lic c o m m e n t a s to w h e th e r s o m e o t h e r c r it e r ia m ig h t b e m o r e **11. G uidelines for Enforcem ent o f the Equal Credit O pportunity and Fair H ousing A cts a p p r o p r ia te . Action taken: In July 1978, the five Federal financial regulatory agencies— Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, National Credit Union Administration, and the Federal Reserve Board—issued for public comment proposed uniform guidelines for enforcement of the Equal Credit Opportunity and Fair Housing Acts (43 p o s s ib le a m e n d m e n t to R e g u la tio n H C. REGULATORY MATTERS THE BOARD MAY CONSIDER DURING THE NEXT SIX MONTHS t **1. R egulation K— International Banking O perations (12 CFR Part 211) a c t i o n is e x p e c t e d w i t h i n t h e n e x t s i x m on th s. o n th e p r o p o s a l d u r in g th e n e x t s ix A uthority: Bank Holding Company Act, 12 U.S.C. 1843(c)(8). R o b e r t S. P lo tk in , s p e c if y th e k in d o f c o r r e c t iv e a c t io n a T h is m a tte r w a s r e fe r e n c e d o n th e p r e v io u s S e m i-A n n u a l A g e n d a a s a (M e m b e r s h ip o f S ta te B a n k in g I n s t i t u t i o n s in t h e F e d e r a l R e s e r v e S y s t e m ) . It i s n o t e x p e c t e d t h a t t h e B o a r d w ill ta k e a n y fin a l a c t io n o n th e m a tt e r d u r in g th e n e x t s ix m o n t h s . Authority: Securities Exchange A ct of 1934, 15 U.S.C. 78b(e)(2). Section 9 o f the Federal Reserve Act, 12 U.S.C. 321 et seq. Docket number: R-0330. 5 **2. R egulation T— Credit by Brokers and D ealers (12 CFR 220.4(c)) Anticipated action: The Board will consider issuing for public comment either an amendment to the special cash account provision of Regulation T or an interpretation to facilitate the covered writing of options by institutions and other entities which are prevented by law from using margin accounts. Because of processing delays in delivery versus payment arrangements in which escrow receipts from banks are used, brokers have asked for more flexibility than presently permitted. Lifting the Securities and Exchange Commission’s moratorium on option expansion has increased the difficulties encountered by brokers, and the Board’s staff has verified with banks that a problem exists. Authority: Securities Exchange A ct of 1934, 15 U.S.C. 78 g and w. Staff contact: R o b e rt L ord , A tto rn e y , 5. R egulation A A — Unfair or D eceptive A cts and Practices (12 CFR Part 227) Anticipated action: T h e B o a r d is **7. Regulatory Im provem ent Project Anticipated action: T h e B oard ’s R e g u la t o r y I m p r o v e m e n t P r o je c t S e c u r itie s R e g u la tio n S e c tio n , D iv is io n r e q u ir e d b y th e F e d e r a l T r a d e i n v o l v e s , a m o n g o t h e r t h in g s , a o f B a n k in g S u p e r v is io n a n d R e g u la t io n C o m m i s s i o n A c t t o a d o p t a r u le s u b s t a n t iv e , z e r o - b a s e r e v i e w o f a ll (2 0 2 -4 5 2 -2 7 8 1 ). a p p lic a b le to th e a c ts o r p r a c t ic e s o f F e d e r a l R e s e r v e r e g u la t io n s th a t a ffe c t b a n k s th a t is s u b s t a n t ia lly s im ila r t o a t h e p u b l i c t o d e t e r m i n e (1 ) t h e t r a d e r e g u la t io n r u le a d o p t e d b y th e fu n d a m e n t a l o b je c t iv e s o f th e r e g u la t io n F T C p r o h ib it in g c e r t a in a c t s o r p r a c t ic e s a n d t h e e x t e n t t o w h i c h it i s m e e t i n g o f o t h e r c r e d it o r s a s u n fa ir o r d e c e p t iv e , c u r r e n t p o l i c y g o a l s , (2 ) n o n r e g u l a t o r y A n n u a l A g e n d a , r e fe r e n c e w a s m a d e to u n le s s th e B o a r d fin d s th a t s u c h a c t s o r a lt e r n a t iv e s th a t w o u ld a c c o m p lis h th e p o s s ib le c o n s id e r a tio n o f a n a m e n d m e n t p r a c t ic e s o f b a n k s a r e n o t u n fa ir o r o b j e c t i v e s , (3 ) c o s t s a n d b e n e f i t s o f t h e to R e g u la t io n T d e a lin g w ith b a c k o ff ic e d e c e p t iv e o r th a t im p le m e n t a t io n o f a r e g u l a t i o n , (4 ) u n n e c e s s a r y b u r d e n s p r o c e d u r e s o f b r o k e r - d e a l e r s . It i s n o t s im ila r r u le w it h r e s p e c t t o b a n k s w o u l d i m p o s e d b y t h e r e g u l a t i o n , a n d (5 ) t h e e x p e c t e d th a t th is m a t t e r w ill b e s e r io u s ly c o n flic t w ith e s s e n tia l c la r ity o f th e r e g u la tio n . c o n s i d e r e d b y th e B o a r d d u r in g th e n e x t m o n e ta ry a n d p a y m e n ts sy ste m s s ix m o n th s. p o l i c i e s o f th e B o a r d . In r e s p o n s e t o a Authority: Securities Exchange Act o f 1934, 15 U.S.C. 78 g and w. p r o p o s e d F T C r u le ( k n o w n a s th e s im p lif ie d v e r s i o n o f R e g u la t io n Z (T r u th “ c r e d it o r h o ld e r -in -d u e -c o u r s e r u le ” ) in L e n d i n g ) t h a t w a s i s s u e d in g o v e r n in g th e p r e s e r v a t io n o f c o n j u n c t i o n w i t h t h e “ T r u t h in L e n d i n g **3. R egulation T— Credit by Brokers and D ealers (12 CFR Part 220) Anticipated action: Staff contact: In th e la s t S e m i- L a u ra H o m e r , S e c u r itie s D u rin g th e p a s t s ix m o n t h s , th e B o a r d t o o k fin a l a c t io n o n a r e d r a fte d a n d c o n s u m e r s ’ c la im s a n d d e fe n s e s , th e S im p lific a tio n a n d R e fo r m A c t .” T h e C r e d it O ff ic e r , D iv is io n o f B a n k in g B o a r d p u b lis h e d a c o m p a r a b le p r o p o s a l B o a r d a ls o a d o p t e d s u b s ta n tiv e c h a n g e s th a t w e r e p r o p o s e d b y R e g u la tio n A S u p e r v is io n a n d R e g u la tio n (2 0 2 -4 5 2 - f o r c o m m e n t (4 1 F R 7 1 1 0 , F e b r u a r y 1 7 , 2 7 8 1 ). 1 9 7 6 ). T h e p r o p o s a l w o u l d r e q u i r e t h e (E x t e n s io n s o f C r e d it b y F e d e r a l f **4. R egulation T— Credit by Brokers and D ealers (12 CFR Part 220) i n s e r t i o n in c e r t a i n c r e d i t c o n t r a c t s o f a R e s e r v e B a n k s ) a n d fo r R e g u la tio n D Anticipated action: T h e B o a r d w ill n o t ic e p r e s e r v in g a c o n s u m e r ’s c la im s (R e s e r v e R e q u ire m e n ts o f D e p o s ito r y a n d d e fe n s e s a g a in s t a s e lle r o f g o o d s o r I n s t it u t io n s ). In a d d it io n , t h e B o a r d s e r v ic e s s o th a t th e y c a n b e r a is e d a d o p t e d p r o p o s e d a m e n d m e n ts to c o n s id e r is s u in g fo r p u b lic c o m m e n t a a g a in s t a n y h o ld e r o f th e c o n t r a c t . T h e R e g u la t io n F (S e c u r it ie s o f M e m b e r p r o p o s e d a m e n d m e n t to R e g u la tio n T to F T C p u b l i s h e d a r e v i s e d v e r s i o n o f it s S t a t e B a n k s ) t o m a k e it s i m i l a r t o t h e p r o v i d e s p e c ia l r u le s fo r m a r g in o n c r e d i t o r r u le f o r c o m m e n t in N o v e m b e r S E C r e g u la tio n s , a n d v a r io u s o p t io n s w r itte n o n T r e a s u r y o r 1 9 7 9 , a n d is e x p e c t e d t o t a k e fin a l a c t i o n a m e n d m e n ts to R e g u la tio n K G o v e r n m e n t N a tio n a l M o rtg a g e s o m e t i m e in 1 9 8 1 . W h e n a f i n a l F T C r u l e (In te r n a tio n a l B a n k in g O p e r a t io n s ), A s s o c ia t io n (G N M A ) s e c u r it ie s . T h e is a d o p t e d , th e B o a r d w i l l c o n s i d e r R e g u la t io n T (C r e d it b y B r o k e r s a n d S e c u r itie s a n d E x c h a n g e C o m m is s io n o n p u b lis h in g a n e w p r o p o s a l fo r c o m m e n t D e a le r s ) , a n d R e g u la t io n Y (B a n k F e b r u a r y 2 4 ,1 9 8 1 , a p p r o v e d a C h ic a g o o r t a k in g o t h e r a p p r o p r ia t e r e g u la t o r y H o l d i n g C o m p a n i e s a n d C h a n g e in B a n k B o a r d O p tio n s E x c h a n g e p r o p o s a l to a c tio n . C o n t r o l). (S e e S e c t io n A .) Authority: Section 18(f) o f Federal Trade Commission Act, 15 U.S.C. 41 et seq. e x p e c t e d to r e v ie w th e co m m e n ts o n tr a d e o p t io n s o n G N M A s e c u r it ie s . T h e A m e r ic a n S to c k E x ch a n g e , In c. r e s u b m itte d a p r o p o s a l o n T r e a s u r y p r o p o s e d r e v is io n s to R e g u la tio n C b o n d s a n d b i l l s t o t h e B o a r d o n M a r c h 5, Docket Number: 1981. Staff contact: If th e s e m a rk e ts a re to o p e n , D u r i n g t h e n e x t s i x m o n t h s , t h e s t a f f is R -0 0 0 6 . D o l o r e s S. S m ith , (H o m e M o rtg a g e D is c lo s u r e ), im p le m e n t in g s t a t u t o r y c h a n g e s in th e r u le m a k in g b y th e B o a r d w ill b e A s s is t a n t D ir e c to r , D iv is io n o f H o m e M o rtg a g e D is c lo s u r e A c t a n d n e c e s s a r y . C u r r e n t ly , th e B o a r d ’ s C o n s u m e r a n d C o m m u n ity A ffa ir s (2 0 2 - r e d r a f t i n g t h e r e g u l a t i o n in a s i m p l i f i e d e x is t in g m a r g in r e q u ir e m e n t s w ill b e 4 5 2 -2 4 1 2 ). f o r m ( S e e e n t r y B .3 ) . T h e s t a f f is a l s o a p p lic a b le u n le s s r e la x in g c h a n g e s a re m a d e fo r o p tio n s o n fix e d in c o m e s e c u r it ie s to b r in g th e m in t o c o n f o r m a n c e w i t h r i s k . I f r u l e m a k i n g is n o t p r o p o s e d b y th e B o a r d , th e m a r k e ts **6. Regulation: R ules Regarding A vailability o f Information (12 CFR Part 261) Anticipated Action: T h e B o a r d w ill e x p e c t e d t o c o m p l e t e it s r e v i e w o f R e g u la t io n Y (B a n k H o ld in g C o m p a n i e s a n d C h a n g e in B a n k C o n t r o l ) , a n d w i l l b e c o n t in u in g its r e v i e w o f t h e “ m a r g in c r e d it ” r e g u la tio n s : R e g u la t io n G fo r t h e s e r is k -t r a n s fe r r in g in s tr u m e n t s c o n s id e r is s u in g fo r p u b lic c o m m e n t (S e c u r it ie s C r e d it b y P e r s o n s O t h e r th a n m a y n o t b e e c o n o m ic a lly v ia b le . S e c to r s c e r t a i n a m e n d m e n t s t o it s R u l e s B a n k s, B ro k e rs , o r D e a le r s ), R e g u la tio n a ffe c t e d b y s u ch a p r o p o s a l w o u ld R e g a r d i n g A v a i l a b i l i t y o f I n f o r m a t i o n in T (C r e d it b y B r o k e r s a n d D e a le r s ), in c lu d e s e c u r it ie s b r o k e r s , g o v e r n m e n t o r d e r to b r in g th e m in to c o n fo r m it y w ith R e g u la t io n U (C r e d it b y B a n k s fo r th e s e c u r it ie s d e a le r s , m o r tg a g e b a n k e r s , e x i s t i n g i n f o r m a t i o n d i s c l o s u r e l a w a s it P u r p o s e s o f F h ir c h a s in g o r C a r r y i n g o p t io n e x c h a n g e s , a n d th e g e n e r a l h a s d e v e lo p e d s in c e th e r e g u la tio n w a s M a r g in S t o c k s ) , a n d R e g u la t io n X (R u le s p u b lic w h o m a y w is h to ta k e p o s itio n s l e ft a m e n d e d , a n d a l s o in o r d e r t o t a k e G o v e r n in g B o r r o w e r s W h o O b ta in in t h e f u t u r e s m a r k e t . a d v a n t a g e o f th e s t a f f s e x p e r ie n c e S e c u r itie s C r e d it). R e q u e s t s fo r p u b lic w o r k in g w ith th e F r e e d o m o f c o m m e n t s o n p r o p o s e d r e v is io n s o f Authority: Securities Exchange Act of 1934, Docket number: R - 0 0 8 2 . Staff contact: L a u r a H o m e r , t h e s e r e g u la t io n s m a y b e m a d e o v e r th e In fo rm a tio n A c t. 15 U.S.C. 78 g and w. Authority: Freedom of Information A ct, 5 S e c u r itie s C r e d it O ff ic e r , D iv is io n o f B a n k in g U.S.C. 552. c o m i n g s ix m o n t h s . In a d d it io n , th e s t a f f is e x p e c t e d t o r e v i e w c o m m e n t s o n t w o p r o p o s e d in te r p r e ta tio n s o f R e g u la tio n B Staff contact: S t e p h e n L. S i c i l i a n o , (E q u a l C r e d it O p p o r t u n it y ) i n v o lv in g S u p e r v i s i o n a n d R e g u l a t i o n (2 0 2 —4 5 2 - S e n io r C o u n s e l, L e g a l D iv is io n , (2 0 2 - c re d it s c o r in g s y s te m s , a n d t w o 2 7 8 1 ). 4 5 2 -3 9 2 0 ). p r o p o s e d a m e n d m e n t s r e g a r d in g 6 e x t e n s io n o f c r e d it to s m a ll b u s in e s s ( S e e e n t r y B . l a n d B .2 r e s p e c t i v e l y ) . Authority: Financial Simplification Act of 1980, 12 U.S.C. 3501. S ta ff contact: B arb a ra R. L ow rey , A s s is t a n t S e c r e t a r y , O f f ic e o f th e S e c r e t a r y , (2 0 2 -4 5 2 -3 7 4 2 ). Board o f Governors o f the Federal Reserve System, March 24,1981. Barbara R. Low rey, Assistant Secretary of the Board. |FR D oc. 81-9553 Filed 3-31-81; 8:45 am] BILLING CODE 6210-01-M
@FedFRASER